Not surprised management would raise funds to develop the Nevada prospect.
"(TSXV: DHR) (the "Company" or "Discovery Harbour") is pleased to announce a non-brokered private placement consisting of the issuance of up to 10,000,000 units (each, a "Unit") at a price of $0.10 per Unit for gross proceeds of up to $1,000,000 (the "Offering"). Insiders, as that term is defined in the policies of the TSX Venture Exchange, may participate in the Offering.
Each Unit will consist of one common share of the Company (each, a "Share") and one half common share purchase warrant, with each whole warrant (each, a "Warrant") entitling the holder to purchase one Share at a price of $0.15 per Share for a period of two years following the closing of the Offering (the "Closing"), subject to an acceleration provision of the Company whereby, if for any ten (10) consecutive trading days the closing price of the Shares on the TSX Venture Exchange (the "Exchange") exceeds $0.25 at any time commencing (4) months after the Closing and until their expiry date, then the remaining term of the Warrants will be reduced to thirty (30) days, commencing seven (7) days from the end of such ten (10) consecutive trading day period.
Finders' fees may be payable in connection with the Offering in accordance with the policies of the Exchange.
All securities issued in connection with the Offering will be subject to a statutory hold period expiring four months and one day after closing of the Offering. Completion of the Offering is subject to the approval of the Exchange. Any participation by insiders in the Offering will constitute a related party transaction under Multilateral Instrument 61-101 - Protection of Minority Security Holders in Special Transactions ("MI 61-101") but is expected to be exempt from the formal valuation and minority shareholder approval requirements of MI 61-101.
The aggregate gross proceeds from the sale of the Offering will be used to conduct further work, including a planned drill program on high priority targets, on the Company's Caldera epithermal gold project in southern Nevada (see news release dated January 9, 2020), to pay outstanding debt, and for general working capital.
None of the securities sold in connection with the Offering will be registered under the United States Securities Act of 1933, as amended, and no such securities may be offered or sold in the United States absent registration or an applicable exemption from the registration requirements. This news release shall not constitute an offer to sell or the solicitation of an offer to buy nor shall there be any sale of the securities in any jurisdiction in which such offer, solicitation or sale would be unlawful.
About Discovery Harbour Resources Corp.
Discovery Harbour is a Canadian TSX Venture Exchange listed company (TSXV: DHR) focused on sourcing, exploring and developing mineral properties, with a strategic focus on gold projects, in order to enhance shareholder value. Its current focus is the Caldera low sulphidation epithermal gold project in southern Nevada.
